Yikes! Washington auto insurance rates blast past inflation
Apr 5, 2024, 1:56 PM | Updated: 1:57 pm
Seattle traffic. (Photo by George Rose/Getty Images)
(Photo by George Rose/Getty Images)
Last year’s 24.7% average increase in auto insurance rates has more than raised eyebrows across Seattle. While rate fluctuations are common, this recent surge is an anomaly.
The average cost of car insurance in Seattle is $901 per year, or $75 per month, for a minimum-coverage policy. The average rate for a full-coverage policy is $2,086 per year or $174 per month, according to ValuePenguin, a Lending Tree firm that researches auto insurance.
According to Washington State Office of the Insurance Commissioner officials, insurance rates increased by about 12% in 2023 and 6.5% in 2022
Washington experienced a hefty auto insurance rate hike, with the state approving an average 7.1% premium increase in 2017. However, subsequent years saw more modest adjustments.
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In 2022, the average rate change settled at 2.8%, following a 3% decline in 2020 and no change in 2021. According to one analyst with the Insurance Commissioner’s office, these figures represent the weighted average base rate change among 20 insurance companies, collectively responsible for 77% of auto insurance policies in the state.
Consumer perspectives
On The Gee & Ursula Show, fill-in host Mike Lewis quipped, “We all got roughly 24% wage increases last year, so we’re doing fine, right? But these auto insurance hikes negate any gains.”
Host Ursula Reutin responded, “Wait, what? That’s it? We’re just netting out zero?”
The blame game has shifted to Mike Kreidler, Washington’s current Insurance Commissioner. Critics argue that linking the rate increase to inflation is an abdication of responsibility.
“This is not what you do as an insurance commissioner,” said Lewis. “Is Kreidler representing insurance buyers or the insurance industry?”
The insurance industry’s stance
Insurance companies defend their actions, emphasizing the need for profitability.
“Utilities get blasted when they go up by 8%, but a 24% increase? That’s excessive,” said Lewis. “Is the Insurance Commissioner truly advocating for consumers?”
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Kreidler is nearing the end of his term ends and has already announced he is not running.
Will he land an advisory role with an insurance company? Become a consultant or lobbyist?
“I won’t speculate,” said Lewis. “But this 24% increase demands accountability. Frankly, I think he should resign.”
Uninsured drivers
With 8.5% of drivers already uninsured, experts predict a grim future.
“We’re headed for a 40% uninsured rate,” Lewis said. “It’s scary,” Ursula responded.
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.
